Business
Jobless claims fall, weak exports push up trade deficit
WASHINGTON – The number of Americans filing new claims for unemployment benefits fell more than expected last week, in a boost to the labor market outlook and the broader economy.
Other data on Thursday showed a weakening in exports in December, which if it extends to January could see trade being a drag on growth in the first quarter after it helped to buoy the economy in the last three months of 2013.
“The underlying economic trend is still positive,” said Craig Dismuke, chief economic strategist at Vining Sparks in Memphis.
Initial claims for state unemployment benefits declined 20,000 to a seasonally adjusted 331,000, the Labor Department said. That was a bit lower than economists’ expectations for a fall to 335,000 in the week ended February 1.
The data has no bearing on January’s employment report, which will be released on Friday, as it falls outside the survey period. Still, it bodes well for the jobs market.
The dollar extended gains against the euro and was little changed against the yen after the claims data, while U.S. Treasury debt prices fell and stock index futures rose.
Hiring is expected to have accelerated in January after being held down by unseasonably cold weather the prior month.
Nonfarm payrolls likely increased 185,000 last month, up from December’s tepid 74,000 count, according to a Reuters poll of economists. The unemployment rate is forecast to hold steady at a five-year low of 6.7 percent.
That would be confirmation that the economy continued to expanded after robust growth in the second half of 2013, which was driven by consumer spending, inventory accumulation and trade.
But economy could lose some support from trade. In a separate report, the Commerce Department said the trade deficit increased 12 percent to $38.7 billion in December as exports recorded their largest decline since October 2012.
When adjusted for inflation, the trade gap rose to $49.5 billion in December from $45.0 billion the prior month.
The government in its first estimate of fourth-quarter GDP last week cited trade as one of the key contributors to the economy’s 3.2 percent annual growth pace during the period.
Trade added 1.33 percentage points to fourth-quarter GDP growth as exports expanded at their quickest pace in three years and imports slowed.
There are, however, doubts that the robust export growth pace can be sustained in light of slowing growth in markets like China. December’s fall in exports could bolster that view.
In December, exports dropped 1.8 percent to $191.3 billion. However, petroleum exports hit a record high in December.
Imports edged up 0.3 percent to $230.0 billion in December. Imports of consumer goods hit a record high, but the impact was limited by a fall in the average price of imported crude oil, which hit its lowest level since February 2011.
The economy’s solid performance in the fourth quarter was mirrored by sturdy gains in productivity.
In another report, the Labor Department said productivity rose at a 3.2 percent annual rate after increasing at a 3.6 percent pace in the third quarter.
Economists polled by Reuters had forecast productivity, which measures hourly output per worker, rising at a 2.5 percent rate in the last three months of 2013.
Still, the underlying trend remained soft, with productivity increasing 1.7 percent compared to the same period in 2012. For all of 2013, productivity increased 0.6 percent.
That was the smallest gain since 2011 and compared to a 1.5 percent rise in 2012.
Unit labor costs – a gauge of the labor-related cost for any given unit of output – fell at a 1.6 percent rate in the fourth quarter, showing weak wage-related inflation pressures in the economy. Unit labor costs fell at a 2.0 percent rate in the third quarter.
Economists polled by Reuters had expected unit labor costs to fall at a 0.5 percent pace in the fourth quarter.
Labor costs were down 1.3 percent from the year-earlier period. They were up 1.0 percent in 2013, the weakest reading since 2010.
– REUTERS
The success of the maiden edition of the Lagos Shopping Festival (LSF), Africa’s first 72-hour non-stop commerce and entertainment event has been credited to the Governor of Lagos State, Babajide Sanwo-Olu.
This is the view of Managing Director/Chief Strategist of Chain Reactions Africa Ltd, Israel Jaiye Opayemi, one of the main organisers of the event.
According to Opayemi, though Chain Reactions Africa conceptualised the event, the festival could be rightly described as the Governor’s baby and owes its success to his leadership. “Firstly, the Lagos Shopping Festival could not have come to fruition if the Governor did not buy into our audacious plan when we first presented the idea to him during the Covid-19 pandemic in 2020. Secondly, it was the Governor’s exemplary leadership of the project as its Chief Marketing Officer which attracted the buy-in of key sponsors like Zenith Bank, Tolaram Group, First Bank Plc, and Guinness Nigeria Plc,” Opayemi revealed.
ALSO READ: Tinubu Okays Bulletproof SUVs, Medical Benefits, Others For Retired Army Generals
While the duo of Zenith Bank and First Bank provided their bank on wheel platforms for buyers at the Lagos Shopping Festival, they also supported the Vendors with special Point of Sale Machines with which to process payments from buyers. The banks were also seen marketing their diverse banking products to guests within the shopping arena.
For Tolaram, it was a time to support the citizens and give back to society. Guests at the Lagos Shopping Festival were freely given some of the products of the group such as PowerOil, Indomie and Kellogg’s packaged into goodie bags and given out to prospective buyers at the shopping arena. The Children’s Arena was however activated by Indomie with the children entertained by Santa Claus within a well-equipped arena manned by the Indomie Brands team and the Lagos State Safety Marshalls. The children were daily treated to free Indomie meals daily and given various gifts to go home with.
On its part, Guinness Nigeria came through as the real life of the Nigerian party by organizing product sampling activation for the teeming guests at the festival using brands such as Singleton, Johnnie Walker, Ciroc, Don Royale and Captain Morgan to deliver pleasant experiences to guests aside from Guinness and Malta Guinness.
While unveiling the identity of the festival last month, Governor Babajide Sanwo-Olu had thanked the management of Zenith Bank Plc, Tolaram Africa Group, Guinness Nigeria Plc and First Bank of Nigeria for supporting the idea of a Lagos Shopping Festival, describing it as a value addition on the state’s tourism calendar and the overall efforts to grow the State’s GDP. The Governor further said, “I must specially acknowledge your pioneering sponsorship role. It is easy for a corporate sponsor to jump on the sponsorship band wagon of an already established festival and fund it. But you are supporting the maiden edition of this Lagos Shopping Festival with us. The competition is watching you now. Do not build this brand with us and yield the space for the competition to take over. I do hope you would all commit long term to this brilliant initiative.”
On his part, Girish Sharma, CEO Guinness Nigeria Plc, expressed enthusiasm for the initiative. “Lagos is the commercial heartbeat of Nigeria and Africa’s entertainment capital, and the Lagos Shopping Festival captures its essence. We see opportunities in this initiative because it is a creative fusion of commerce and entertainment. This partnership reflects our dedication to fostering economic opportunities and support the nation’s vibrant entertainment industry.”
A first-of-its-kind, the festival was a convergence of commerce and entertainment, bringing together buyers and sellers in the MSME ecosystem, and hordes of fun-seekers who were entertained with thrilling performances by A-list entertainers, including Adekunle Gold, Wande Coal, Teni, Young Jonn, BNXN, Ayo Maff, SB Live and EmmaOMG. The list also included some of Nigeria’s most sought after DJs such as DJ Neptune, DJ YK Mule, DJ Baddo while Gbenga Adeyinka the 1st and Larry J dished out rib-cracking comedy performances.
Held from 23rd to 25th Day of December 2024, at the iconic Mobolaji Johnson Arena, Onikan Stadium, Lagos, the Lagos Shopping Festival saw thousands of fans throng the main venue and select Lagos malls during the three-day period to bag the latest bargains from local and top global brands.
The Nigerian Naira experienced mixed movements in the foreign exchange markets on Monday, as it depreciated to N1,665 per dollar in the parallel market, down from N1,660 per dollar recorded over the weekend.
In contrast, the official exchange rate saw the Naira appreciate to N1,534.56 per dollar, improving slightly from N1,535 per dollar last Friday, according to data released by the Central Bank of Nigeria (CBN).
RELATED NEWS: Naira Weakens Against Dollar Amid FX Shortages
This reflects a marginal gain of 44 kobo in the official Nigerian Foreign Exchange Market (NFEM).
As a result, the gap between the parallel market rate and the NFEM rate widened to N130.44 per dollar, compared to the N125 per dollar margin recorded over the weekend.
In the absence of last-minute change in plans, marketers and retailers of petroleum products will start lifting Premium Motor Spirit (PMS) also known as petrol from the Port Harcourt Refining Company (PHRC) this week.
The Publicity Secretary of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Joseph Obele, made the disclosure, according The Punch.
It was gathered that since the refinery commenced operations in November, it had limited its supplies to retail outlets belonging to the Nigerian National Petroleum Company Limited (NNPC Ltd).
Though marketers still load fuel from the NNPC Ltd, Obele clarified that the products marketers currently buy from the state-owned oil company were imported.
He expressed concerns that the NNPC Ltd was selling PMS to retailers in Port Harcourt at prices higher than that of Lagos State, pleading that the refinery should sell at N899 per litre instead of N970.
“NNPC is still telling us to buy at a rate different from the rate they are selling to Lagos at the moment because of logistics. So, Port Harcourt retail outlet owners are not really comfortable with that. Hence, the Port Harcourt refinery will start servicing us this week.
“We are also requesting that the same rate NNPC is selling to our members at Lagos should be the rate they will be selling to us over here in Port Harcourt too. We are not really comfortable with that disparity,” he disclosed.
On whether or not marketers in Port Harcourt and environs have started buying directly from the NNPC Ltd’s managed refinery, he replied, “No, but it will commence this week. The trucks loading out are for the NNPC retail outlets only.”
On his request to the NNPC Ltd, Obele stated, “We in Port Harcourt, we plead with the NNPC to sell to us at the same rate they are selling fuel to Lagos marketers. The difference is too much. It is N899 per litre in Lagos but N970 in Port Harcourt. It is far higher than that of Lagos.
“The way they explain it, it is like their own vessel will be bringing it and shipping it over to Port Harcourt depot for us to buy. So, we are now saying that since you will be selling directly to us from the refinery, you now have the stock available. Sell to us at the same rate you are selling to Lagos marketers.
“So, that’s where we are right now. Our request is that the NNPC should sell to us from the Port Harcourt refinery at the same rate they are selling the product to those in Lagos.”
Asked if he meant the NNPC Ltd was still importing fuel to Lagos, the PETROAN spokesman replied in the affirmative, saying “The stocks in Lagos are imported stocks.”
Recall that after several postponements, the NNPC Ltd announced in November that the old 60,000 barrels per day Port Harcourt refinery had resumed operations.
The state oil major promised that rehabilitation works at the new Port Harcourt refinery with 150,000 barrels per day capacity would soon be completed.
Speed Darlington Sues IGP For N300M Over Unlawful Detention
Opayemi Salutes Sanwo-Olu Over Successful Lagos Shopping Festival
Ex-Prison Officer Jailed For 15 Months Over Viral Inmate Scandal
Tinubu Okays Bulletproof SUVs, Medical Benefits, Others For Retired Army Generals
Naira Depreciates In Parallel Market, Gains In Official FX Market
Powerful 6.8-Magnitude Earthquake Hits China, Dozens Killed
OSSG Raises Alarm Over Murder Plot By APC Chieftain
NCC, SMEDAN, NAICOM, SEC, Others Set for SUPERNEWS SMEs Conf June 13
Sahara’s Tonye Cole resigns from GPHCDA
Niger Delta Avengers: President Buhari Reads riot Act …considers the carrot and stick option
Oando opens ultra-modern petrol station in Lagos
